By: Amanda Wilson
Last week, President Obama signed into law the Bipartisan Budget Act of 2015. As I mentioned in a prior post (found here), the budget bill contained a proposal to revamp how partnerships are audited. Specifically, TEFRA (the 1982 Tax Equity and Fiscal Responsibility Act) is out. The new partnership audit rules go into effect for partnership returns filed for partnership taxable years beginning after December 31, 2017.
While this sounds like a long way away, taxpayers should start reviewing their partnership agreements now to see how they will need to be amended to deal with the new rules. There is a strong likelihood that amending will be necessary.